According to the bank domestically a revival in the Energy Sector has reduced ­financial stability risks from the macro-economic channel.

The report says the 2017 vulnerabilities and risk assessment has identified high household debt, public sector debt-servicing and the low domestic Interest rate environment as key sources of potential ­financial imbalances.

It says despite these vulnerabilities and risks, the Financial Sector appears healthy.

According to the report the banking system is highly capitalised, profitable and asset quality is favourable.

It also says the Insurance and Pensions Industries continue to exhibit strong ­financial fundamentals.